FT : Why luxury goods just isn’t a platform business

Why luxury goods just isn’t a platform business
In a sector where only a few brands really matter, Farfetch’s path to profitability is not clear

In many walks of life, platform companies do very well. It is perfectly possible to create a digital space that connects large numbers of buyers and sellers, and make a decent cut out of each transaction. See Uber, which now has a market value of more than $126bn. Or Airbnb, worth about $87bn.

Compare and contrast such success stories with Farfetch. The platform once hoped to be the “Uber of luxury”. At one time it was worth $24bn. It fetched very little in the end. A $500mn deal at the end of the year, with Korean etailer Coupang and Greenoaks Capital Partner, wiped out the equity entirely.

Farfetch’s unravelling points to a fundamental problem in creating a platform for luxury goods. Unlike the fragmented universe of drivers, rental accommodation, beauty products or food delivery, there are not many luxury brands that really matter. 

Farfetch may have had thousands of brands on its website but analysis carried out by Bernstein in 2020 suggested that most were minor. Almost 70 per cent of brands on Farfetch had fewer than 50 products on the marketplace. Just 10 major brands, including Nike and Adidas, probably drove the majority of the platform’s traffic. 

A concentrated market structure is not easy for a platform to navigate. It puts negotiating power firmly in the hands of its suppliers. Moreover, luxury brands are by and large keen to sell to their customers directly, jealously guarding those relationships and limiting the proportion of goods that flow through wholesale channels. Unsurprisingly, they were reluctant to feed the growth of a middleman — especially one that aspired to become big enough to call the shots in their sector. 

Following Coupang’s rescue, Farfetch’s retail business will live to see another day. Yet its path to profitability is not clear. One option will be to cut costs right down. Another will be to focus on emerging brands, rather than uncooperative behemoths, and offer them a route to market — though their pulling power for punters, and willingness to pay, is questionable.

There is not an obvious way to restyle this battered outfit.

>>> Myers Industries has entered into an Agreement and Plan of Merger through wh

Myers Industries has entered into an Agreement and Plan of Merger through which it will acquire Signature Systems (19.55)
  • Signature Systems, a global ground protection leader, bolsters Myers' margin and profitability profile, and provides an attractive platform for continued growth.
  • The Signature Systems acquisition enhances Myers' traditional strength of free cash flow generation and advances Myers from Horizon 1 to Horizon 2 in its strategic growth plan.
  • Acquisition delivers $8 million in annualized operational and cost synergies implemented by 2025.
  • US GAAP EPS projected to be flat to slightly dilutive in 2024, with $0.20 - $0.30 per share accretion in 2025, $0.40 - $0.50 per share accretion in 2026 and additional meaningful accretion beyond 2026.

>>> US Filings, Offerings and Pricings

Filings, Offerings and Pricings
Filings:
  • Aurora Innovation (AUR) files $850 mln mixed shelf securities offering.
  • BioLineRx (BLRX) files $250 mln mixed shelf securities offering.
  • Holley (HLLY) files $200 mln mixed shelf securities offering.
  • American Battery Technology (ABAT) files for $150 mln mixed securities shelf offering.
  • MeridianLink (MLNK) files for $500 mln mixed securities shelf offering; also files for 57,252,193 share common stock offering by selling shareholders.
  • Precigen (PGEN) files for $300 mln mixed securities shelf offering.
  • EchoStar (SATS) files 49,324,850 share common stock offering that may be issued upon conversion of certain convertible notes issued by its wholly-owned subsidiary, DISH Network.
Offerings:
  • EQT Corp. (EQT) redeems outstanding 1.75% convertible senior notes due 2026.
  • VinFast Auto (VFS) entered into a securities purchase agreement; agreed to issue and sell to Yorkville a convertible debenture in the principal amount of $50.0 mln.
  • Atlanticus (ATLC) entered into $50 mln at-the-market sales agreement.
  • Lexicon Pharma (LXRX) entered into $75 mln open market sale agreement.
  • Cibus Global (CBUS) entered into $80 mln sales agreement

>>> US Research Calls

Research Calls
  • Upgrades:
    • Acadia Realty Trust (AKR) upgraded to Buy from Hold at Jefferies; tgt raised to $20
    • Alpha and Omega Semi (AOSL) upgraded to Buy from Neutral at B. Riley Securities; tgt raised to $34
    • American Homes 4 Rent (AMH) upgraded to Buy from Hold at Jefferies; tgt raised to $41
    • Booking Holdings (BKNG) upgraded to Equal Weight from Underweight at Wells Fargo; tgt raised to $3459
    • Boston Properties (BXP) upgraded to Buy from Hold at Jefferies; tgt raised to $80
    • Brady (BRC) upgraded to Buy from Underperform at BofA Securities; tgt raised to $65
    • Centene (CNC) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $90
    • CubeSmart (CUBE) upgraded to Buy from Hold at Jefferies; tgt raised to $53
    • Doximity (DOCS) upgraded to Neutral from Underperform at BofA Securities; tgt raised to $29
    • Douglas Emmett (DEI) upgraded to Hold from Underperform at Jefferies; tgt raised to $15
    • Equinix (EQIX) upgraded to Peer Perform from Underperform at Wolfe Research
    • Essex Property (ESS) upgraded to Buy from Hold at Jefferies; tgt raised to $281
    • Evergy (EVRG) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $56
    • Exact Sciences (EXAS) upgraded to Buy from Hold at The Benchmark Company; tgt $91
    • Expedia Group (EXPE) upgraded to Equal Weight from Underweight at Wells Fargo; tgt raised to $159
    • Huntington Banc (HBAN) upgraded to Equal Weight from Underweight at Barclays; tgt raised to $15
    • Hilton Grand Vacations (HGV) upgraded to Buy from Hold at Jefferies; tgt raised to $50
    • Hudson Pacific Properties (HPP) upgraded to Buy from Hold at Jefferies; tgt raised to $12
    • Invitation Homes (INVH) upgraded to Buy from Hold at Jefferies; tgt raised to $41
    • Ionis Pharma (IONS) upgraded to Buy from Neutral at BofA Securities; tgt raised to $62
    • Marks and Spencer (MAKSY) upgraded to Outperform from Neutral at Exane BNP Paribas
    • Moderna (MRNA) upgraded to Outperform from Perform at Oppenheimer; tgt $142
    • nCino (NCNO) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $42
    • NETSTREIT (NTST) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $22
    • Pactiv Evergreen (PTVE) upgraded to Buy from Neutral at BofA Securities; tgt raised to $16
    • Park Hotels & Resorts (PK) upgraded to Buy from Hold at Jefferies; tgt raised to $21
    • Sprout Social (SPT) upgraded to Overweight from Neutral at Cantor Fitzgerald; tgt raised to $74
    • Thoughtworks (TWKS) upgraded to Outperform from Neutral at Robert W. Baird; tgt $6
    • Travel + Leisure Co (TNL) upgraded to Buy from Hold at Jefferies; tgt raised to $57
    • Universal Health (UHS) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $177
    • Weave Communications (WEAV) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $15
  • Downgrades:
    • Alliant Energy (LNT) downgraded to Equal Weight from Overweight at Barclays; tgt raised to $53
    • Apple (AAPL) downgraded to Underweight from Equal Weight at Barclays; tgt lowered to $160
    • AvalonBay (AVB) downgraded to Peer Perform from Outperform at Wolfe Research
    • AvidXchange (AVDX) downgraded to Neutral from Overweight at Piper Sandler; tgt raised to $13
    • Avery Dennison (AVY) downgraded to Underperform from Buy at BofA Securities; tgt $208
    • Ball Corp (BALL) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $59
    • BlackLine (BL) downgraded to Underweight from Neutral at Piper Sandler; tgt raised to $60
    • Brunswick (BC) downgraded to Neutral from Buy at B. Riley Securities; tgt $106
    • Choice Hotels (CHH) downgraded to Underperform from Hold at Jefferies; tgt lowered to $96
    • Citizens Financial Group (CFG) downgraded to Equal Weight from Overweight at Barclays; tgt raised to $40
    • Cinemark (CNK) downgraded to Neutral from Buy at B. Riley Securities; tgt lowered to $15
    • Exelon (EXC) downgraded to Neutral from Buy at UBS; tgt lowered to $37
    • Estee Lauder (EL) downgraded to Hold from Buy at Deutsche Bank; tgt $146
    • Fortive (FTV) downgraded to Hold from Buy at Vertical Research
    • GoodRx (GDRX) downgraded to Underperform from Buy at BofA Securities; tgt lowered to $4.50
    • Hasbro (HAS) downgraded to Neutral from Buy at DA Davidson; tgt lowered to $53
    • Harmony Biosciences (HRMY) downgraded to Underperform from Neutral at BofA Securities; tgt $30
    • Helmerich & Payne (HP) downgraded to Neutral from Buy at Seaport Research Partners
    • Inspire Medical Systems (INSP) downgraded to Hold from Buy at Stifel; tgt $210
    • Jackson Financial (JXN) downgraded to Hold from Buy at Jefferies; tgt $55
    • Mid-America Aptmt (MAA) downgraded to Hold from Buy at Jefferies; tgt lowered to $136
    • Otis Worldwide (OTIS) downgraded to Hold from Buy at Vertical Research
    • ProFrac Holding (ACDC) downgraded to Neutral from Buy at Seaport Research Partners
    • Regions Fincl (RF) downgraded to Underweight from Equal Weight at Barclays; tgt raised to $22
    • Repsol SA (REPYY) downgraded to Mkt Perform from Outperform at Bernstein
    • Ryanair Hldgs (RYAAY) downgraded to In-line from Outperform at Evercore ISI
    • Sherwin-Williams (SHW) downgraded to Neutral from Buy at Northcoast; tgt $315
    • Simply Good Foods (SMPL) downgraded to Hold from Buy at Deutsche Bank; tgt raised to $42
    • Southwest Air (LUV) downgraded to In-line from Outperform at Evercore ISI; tgt $35
    • Unity Software (U) downgraded to Underweight from Neutral at Piper Sandler; tgt raised to $35
  • Others:
    • American Intl (AIG) removed from Conviction Buy List at Goldman
    • Bath & Body Works (BBWI) removed from Conviction Buy List at Goldman
    • Boeing (BA) removed from Conviction Buy List at Goldman
    • O'Reilly Auto (ORLY) added to Best of Breed Bison List at DA Davidson
    • Parker-Hannifin (PH) added to Conviction Buy List at Goldman
    • Rollins (ROL) initiated with a Buy at Goldman; tgt $49
    • Shift4 Payments (FOUR) removed from Conviction Buy List at Goldman
    • Tapestry (TPR) added to Analyst Focus List at JP Morgan
    • Textron (TXT) added to Conviction Buy List at Goldman
    • UiPath (PATH) initiated with an Outperform at William Blair

Wired : The 18 Best EVs Coming in 2024

The 18 Best EVs Coming in 2024
Tesla and BYD battled it out to be the major electric car player in 2023, all while global EV sales approached 10 million. Here are our picks for the best EVs of 2024.
PHOTO-ILLUSTRATION: CAMERON GETTY

After years of waiting, Tesla finally delivered the first Cybertrucks in 2023. We’ll have to see whether the many development quality issues have been fixed, of course—but, thankfully, as it’s been handed to (very few select) customers, we won’t have to yet again include the truck in our yearly guide.
In the meantime, Tesla has other issues to consider, such as recalling nearly all the EVs it’s sold in the US so far to fix an Autopilot fault, while also fending off Chinese brands. China’s BYD Auto has caught up with Tesla in sales volume, and is soon predicted to surpass it to lead globally, even if the growth in worldwide sales is slowing.
The pace at which traditional automakers are making all-electric vehicles is only increasing, and the sheer volume of EVs landing in 2024 shows this. We’re hoping that these future designs and car designers will take the inherent opportunities in electric architecture to trend toward being less macho and more inclusive.

Here’s our comprehensive guide on what to watch out for in the world of EVs in 2024.
Kia EV3
PHOTOGRAPH: KIA
Kia’s EV3 electric compact SUV debuted as a concept last year and will arrive for real in 2024. Kia’s looking to produce something practical and “joyful to drive,” and unsurprisingly it resembles a cut-down EV9 seen in last year’s picks. Kia plans to introduce a number of smaller EVs like the EV3, with prices ranging from $35,000 to $50,000. The windscreen on the EV3 is pushed forward, while those robust squared wheel arches, cut with asymmetrical angles, mirror the EV9. A disconnected C pillar gives the roof a floating effect. The inside should be appointed with environmentally friendly materials, and feature mini tables that rotate in length, position, and angle. The bench-type rear seat can be folded upward to store bulky items such as electric scooters and bicycles.
Hyundai Ioniq 5 N
PHOTOGRAPH: HYUNDAI
It’s no secret we’re fans of the recent design direction at Hyundai, and we also approved of the 2021 “original” Ioniq 5. But there were certain elements of the 5 (the pointy middle of the front bumper and the flared wheel arches, to name two) that might not age as well as one might think. It’s gratifying that this refresh, landing in 2024 and dubbed the Ioniq 5 N, softens those initial design enthusiasms. Then there’s the performance upgrade: Torque and power are up to 478 kW/650 PS when you press the N Grin Boost button, and drift tech helps you maintain slide angles if you like going sideways. Other flourishes include bucket seats that are positioned 20 mm lower compared to the basic spec, a lip spoiler running across the lower part of the front bumper, and a rear diffuser with “eye-catching” luminous orange accents.
Hyundai Ioniq 7
PHOTOGRAPH: HYUNDAI
Now that Kia’s EV9 is here, the next large eSUV from the Hyundai Motor Group will be the Ioniq 7, and it’s been spotted in the testing phase in the wild ahead of its debut in 2024. Expect built-in autonomous driving technology and a good range. The interior will likely take notes from the excellent Ioniq 6. The side profile of the Ioniq 7 shows its windscreen is steeply raked and a sloping roofline at the rear, unlike the boxy Kia EV9—and both are based on the same E-GMP platform. In the UK, the EV9 has a 99.8-kWh battery running either a single 201-bhp motor or 379-bhp dual-motor. The EV9 is supposedly capable of nearly 350 miles on a single charge, so expect similar of the Ioniq 7. It will also have the excellent 800-volt charging system, allowing a 10 to 80 percent charge in under 25 minutes.
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The Ioniq 7 is expected to be one of the last models to use the Hyundai Group’s E-GMP platform. In 2025 we’ll see the first vehicles based on its next-gen EV platforms: eM and eS. The eM will apparently allow for a 50 percent improvement in range on a single charge, as well as supporting Level 3 autonomous driving or higher. It will also employ the group's “Integrated Modular Architecture,” standardizing key components like battery and motors. The eS is an EV platform for commercial Purpose Built Vehicles like those used for ride pooling, cargo hauling, and deliveries.
Range Rover Electric
PHOTOGRAPH: LAND ROVER
Land Rover has taken its time getting there, but the full electric Range Rover has finally been slated for production in 2024. On-road testing has already begun in all sorts of conditions including –40 degrees Celsius in Sweden and 50 degrees Celsius in Dubai, so you can be assured that the company is not taking any chances with its 50-plus-year history conquering anything off-road. Much like the current Kias and Hyundais, the full-electric Range Rover will have an 800-volt architecture for rapid charging. Expect a hefty range, too, approaching 400 miles. Not only will it be whisper-quiet thanks to the electric powertrain, an active noise cancellation system has also been confirmed. For those who can’t wait for the reviews, preorders are open now.
Ford Explorer
PHOTOGRAPH: FORD
After a half-year delay due to battery issues, the Explorer crossover will land in the summer of 2024. It uses Volkswagen’s MEB platform (seen in all the ID. models) and will likely feature the same battery and motor options, so 52-kWh or 77-kWh numbers good for up to 335 miles, and between 201 and 335 bhp. Designed in America, but built at the new Ford Cologne EV Center in Germany, for now this EV is EU-only, but, if it proves popular, who knows? There will be two- and all-wheel drive versions, with 10 to 80 percent fast charging in just 25 minutes. The interior is a particular win, too, with a soundbar that runs the width of the dash.
Polestar 4
PHOTOGRAPH: POLESTAR
The Polestar 4 is an SUV coupé with a difference. Look at the rear end and you’ll see why—Polestar has got rid of the rear window entirely. The most powerful dual-motor 4 will run a 102-kWh battery for a claimed range of 350 miles (using the WLTP standard of measurement), and so is the most high-performance Polestar to date. The long-range single motor car has 272 bhp and a claimed range of 372 miles (WLTP). Bidirectional charging is included, and there is vehicle-to-load capability so you can use the car's battery to power small appliances. Instead of the rear glass, the brand is leaning on the capabilities of the high-definition screen that replaces the age-old rear-view mirror. A real-time feed from a roof-mounted rear camera supposedly delivers a broader field of vision. This tech isn’t new—Range Rover has been using its ClearSight camera mirror for years—but Polestar is the first to go all in on the design potential. The reason? Better aerodynamic properties: The 4 has a slippery 0.26 drag coefficient.
Porsche Macan EV
PHOTOGRAPH: PORSCHE
It’s been quite the wait since the 2019 Taycan, but finally the all-electric Macan comes into view in 2024. (We'll all have to wait a little longer for the planned pure-electric 718 Boxster and Cayman, though.) Expect Porsche’s second EV, built from the ground up for the new powertrain, to have the pace you’d expect from the brand with a two-motor setup delivering up to 603 bhp, while the 100-kWh battery should be good for at least 310 miles of range. The interior has a main 12.3-inch touchscreen that runs a new Porsche UI with supposedly better integration of electric drive features, such as intelligent routing and live updates of public fast-charging points.
Audi Q6 e-tron
PHOTOGRAPH: AUDI
Audi’s new eSUV, which sits between the smaller Q4 e-tron and larger Q8 e-tron, features a next-gen EV platform called the Premium Platform Electric, or PPE, that it shares with Porsche, and which will also be used on the above Macan EV. It has an 800-volt architecture much like the existing Kias and Hyundais, boasts new electric motors, and is powered by a 93.0-kWh battery that employs prismatic lithium-ion cells to give the battery more energy density. The rear motor is the main powerhouse, with the front unit called on for acceleration and traction, and both combined will supposedly deliver a zero-to-60 time of under six seconds for the Q6 (and 4.5 for the SQ6). We’re hoping the prototype’s headlamp tech, which can project both text and videos, makes it into production. Fingers crossed.
Nimbus One
PHOTOGRAPH: NIMBUS EV
“Your three-wheeled chariot awaits,” is the tagline of this nimble two-seater urban EV. The sub-$10,000 vehicle coming in 2024 not only looks like it’s fun to drive, but has stats that are mighty impressive: zero to 30 mph in 3 seconds; 93-mile range; miles-per-gallon gasoline equivalent of 370; front airbags, ABS, ADAS, and a steel frame; and swappable 9-kWh battery that tops up in 5.4 hours from a household outlet. Two Nimbus versions are coming, with the One having a top speed of 50 mph and One S hitting 75 mph. But the real boon is that slender three-wheel design, as narrow as a motorcycle, maintains its balance by leaning into turns, making the Nimbus ideal for zipping through traffic.
BMW i4 2024
PHOTOGRAPH: BMW
The BMW i4 has been a hit for the German automaker, and rightly so. But it’s about to get a little bit better thanks to a 2024 refresh. Though camouflaged when it was spotted being test-driven, it looks as if the exterior design isn’t getting much of an overhaul—grilles remain the same with the radar to one side, the bumper design looks mostly untouched, but the headlights feature a new LED signature. The rear bumper may well be reshaped, however, along with updated rear lights. The current i4 has up to a 365-miles range with a 80-kWh battery, but this is bested by the Model 3 Long Range’s 391 miles, so expect BMW to address this as well as get the new iDrive 9 infotainment system.
Lotus Emeya
PHOTOGRAPH: LOTUS
Following on from the SUV Eletre, which we very much approved of, is Lotus’s first hyper-GT, made to take on the Porsche Taycan. The four-door EV will go into production in 2024 making it the British brand’s third electric model after the Eletre and the much-delayed Evija hypercar. The top model sporting adaptive air suspension and active aero will supposedly hit 893 bhp and launch from zero to 62 mph in a mighty 2.8 seconds. Rumor has it that Lotus will shove in a 102-kWh battery pack good for 10 to 80 percent refills in as little as 18 minutes with 350-kW charging. As for range, Lotus has said the Emeya will be able to drive from Amsterdam to Paris on a single charge, so that’s a predicted max distance of around 315 miles.
BYD Seal U
PHOTOGRAPH: BYD
BYD’s global EV dominance marches on with this fourth model being added to its UK lineup in early 2024. The Seal U is will be the first SUV from the brand for UK customers as its larger seven-seater, the Tang, only comes in left-hand drive. The Seal saloon is electric only and uses BYD’s e-Platform 3.0, while the Seal U is a version of a car already sold in China with a choice of plug-in hybrid or pure electric. As a midsize SUV in electric form, the Seal U will be aiming to take on the Volkswagen ID.4 and Ford Explorer, and will have two battery sizes: 71 kWh and 87 kWh. The smaller should get 261 miles of range, the larger 311 miles—but both will power 218-bhp electric motors. Charging from 30 to 80 percent should be as little as 28 mins for the 71-kWh model.
Volvo EX30
PHOTOGRAPH: VOLVO
Volvo would like everyone to focus on the news that 2024 is the year of its “value” EV designed specifically to lure new customers to the brand, and not, say, the fact that its seven-seat electric EX90 was due to be on the roads by end 2023 but has been delayed for more software development. The entry-level EX30 comes in three flavors: a single motor 51 kWh, single motor 69 kWh, and performance twin-motor 69 kWh. It sits on the smallest version of Geely’s Sustainable Experience Architecture, which of course means it inevitably shares similar specs to the group’s Smart #1 and Zeekr X. As we said in our review, “The top model is an NMC battery, twin motor, all-wheel-drive affair putting out 315 kW (428 hp) and zero to 62 mph in a frankly preposterous 3.6 seconds. This makes it Volvo's ‘fastest accelerating car ever,’ which feels very much like corporate posturing and is entirely unnecessary for such a segment of the market.”
China on the Rise
Aside from BYD, which has already made significant inroads in the West, there are numerous China auto manufacturers making waves in 2024, and while we may not be as familiar with the brands, their releases are possibly even more important because innovation and technological advancement that takes place in China soon influences or finds its way into EVs in the EU and US. Here’s a quick roadmap compiled with the help of Mark Rainford from Inside China Auto.
Li Auto Mega
PHOTOGRAPH: LI AUTO
With the Mega, Li Auto is putting aerodynamics front and center on a multi-purpose vehicle, yet giving German saloon levels of legroom in the third row. The company’s first fully electric car can charge 500 km in 12 minutes, and will likely come with its latest NOA system, which features “valet parking” (you get out at the parking entrance, and the car supposedly finds a space on its own and can then be summoned later) plus city full self-driving. But exports aren't expected until at least 2025.
Luxeed S7
PHOTOGRAPH: LUXEED
Huawei’s car is built together with Chery and marketed as a direct rival to Tesla’s high-end Model S. It features the Harmony OS with an excellent autonomous drive system that's capable of city-level autonomous driving. You still need to keep a hand on the wheel, but that’s because of a Chinese regulation, not because the car can't drive itself. You get up to 855 km of range when measured with the CLTC testing standard, so more like 371 miles in reality. You also get a 215-km charge in 5 minutes. No word on exports, but Chery is China's largest exporter of cars so it's possible the S7 will be coming soon.
Xiaomi SU7
PHOTOGRAPH: XIAOMI
Not much concrete information is available on this EV yet, but given Xiaomi's background in smartphones and smart home gadgets, it’s an exciting vehicle; the company will be going head-to-head with Huawei's cars, but with less experience in the game. Supposedly there will be two powertrain options: a base rear-wheel drive version with power output at 220 kW (295 hp; 299 PS), and a more powerful all-wheel drive version producing 495 kW (664 hp; 673 PS). Top speed is limited to 130 mph for the base model, and 165 mph for the all-wheel drive version.
XPeng G6
PHOTOGRAPH: XPENG
This superb EV came out in June 2023 in China, but it's coming to selected Western European markets in 2024. We loved the G9, but this smaller G6 comes in two drive variants: a basic one-engine 296-hp (221-kW) rear-wheel drive, and an all-wheel drive option putting out 480 hp (360 kW). The basic battery has a capacity of 66 kWh, while the larger one is 87.5 kWh. During the premiere, XPeng declared that the G6 was equipped with a fast charging speed that allows up to 300 additional kilometers of range in just 10 minutes, made possible thanks to the brand’s new modular SEPA 2.0 platform.
JiYue ROBO-02
PHOTOGRAPH: JIYUE
The second car from the Geely and Baidu partnership after the JiYue (sometimes “Jidu”) ROBO-1. It should feature a hefty chunk of Baidu’s extensive self-driving ability, but unlike for the company's robotaxi services, no Level 4 self-driving tech is confirmed. It should be built on Geely’s impressive SEA architecture, so we could be looking at an 800-volt electric system, at least 400 kW of power, plus a gargantuan central screen.

>>> US Gapping down

Gapping down
News:
  • CORT -33.1% (unfavorable patent ruling in Teva (TEVA) case)
  • YY -10.4% (JOYY provides update on development in sale of YY Live)
  • MDXG -6.5% (Provides AXIOFILL Update & Reiterates 2023 Full Year Net Sales and Fourth Quarter Adjusted EBITDA Margin Outlook)
  • PNM -5.6% (PNM Resources announces Avangrid (AGR) termination of merger agreement)
  • LI -5.1% (reports Dec deliveries)
  • LXRX -3.3% (disclosed Friday that it entered into $75 mln Open Market Sale Agreement )
  • ASML -3% (issues statement regarding partial revocation export license)
  • CBUS -2.7% (entered into $80 mln Sales Agreement with Stifel, Nicolaus & Company)
  • VFS -2.6% (entered into a securities purchase agreement)
  • NIO -2.5% (reports Dec deliveries)
  • RPTX -2.1% (establishes automatic securities disposition plans; up to 929,670 common shares in the aggregate may be sold by executive officers)
  • ABAT -2.1% (files for $150 mln mixed securities shelf offering)
  • VRNA -1.9% (enters into debt facility of up to $400 mln with Oxford Finance and Hercules Capital (HTGC))
  • NOK -1.8% (expects that it will not achieve its 2023 financial outlook as licensing renewal discussions are expected to continue into 2024)
  • VTNR -1.8% (amended its existing term loan agreement)
  • XPEV -1.7% (reports Dec deliveries)
  • AUR -1.6% (files $850 mln mixed shelf securities offering)
  • BIDU -1.6% (JOYY provides update on development in sale of YY Live)
  • NMG -1.5% (pays accrued interests)
  • FREY -1.1% (completed its previously announced process to redomicile from Luxembourg to the United States effective December 31)
  • XOMA -1.1% (authorizes its first stock repurchase program, up to $50 mln)
  • CNHI -1% (completes Voluntary Delisting of Shares from Euronext Milan and begins Single Listing on the New York Stock Exchange) .
Analyst comments:
  • GDRX -6.9% (downgraded to Underperform from Buy at BofA Securities)
  • BL -2.4% (downgraded to Underweight from Neutral at Piper Sandler)
  • BALL -2.2% (downgraded to Underperform from Neutral at BofA Securities)
  • HAS -2.1% (downgraded to Neutral from Buy at DA Davidson)
  • AVDX -1.9% (downgraded to Neutral from Overweight at Piper Sandler)
  • EL -1.9% (downgraded to Hold from Buy at Deutsche Bank)
  • AAPL -1.8% (downgraded to Underweight from Equal Weight at Barclays)
  • BC -1.7% (downgraded to Neutral from Buy at B. Riley Securities)
  • AVY -1.3% (downgraded to Underperform from Buy at BofA Securities)

>>> US Gapping up

Gapping up
News:
  • VYGR +32.1% (enters capsid license agreement and strategic collaboration with Novartis (NVS) to advance novel gene therapies)
  • LLAP +17.5% (reports an excess of $70 million year-end cash balance)
  • BITF +10.3% (Earns 446 BTC in December 2023 and 4,928 BTC for the Full Year 2023)
  • PGEN +6.7% (files for $300 mln mixed securities shelf offering)
  • LBPH +3.6% (to Host Call to Discuss Topline Data from the PACIFIC Study)
  • ATNM +3.5% (Announces Acceptance of Five Abstracts for Presentation at the 2024 Tandem Meetings)
  • ADEX +3.2% (Adit EdTech Acquisition Corp. and GRIID Infrastructure complete business combination)
  • MNKD +3% (Mannkind and Sagard Healthcare enter into royalty purchase agreement for up to $200 mln)
  • MXCT +1.7% (appoints Maher Masoud as President, Chief Executive Officer and Director)
  • EQT +1.6% (redeems outstanding 1.75% convertible senior notes due 2026)
  • GOGL +1.4% (appoints Lars-Christian Svensen as the CEO of Golden Ocean Management AS)
  • LPTX +1.4% (Announces Completion of Enrollment in Randomized Controlled Part C of the DisTinGuish Study of DKN-01 for the Treatment of Gastric Cancer Patients)
  • BLRX +1.3% (files $250 mln mixed shelf securities offering)
  • PRMW +1.3% (closed the previously announced sale of a significant portion of Primo Water's International businesses for $575 mln; Robbert Rietbroek joins as CEO)
Analyst comments:
  • AOSL +4% (upgraded to Buy from Neutral at B. Riley Securities)
  • CNC +1.1% (upgraded to Overweight from Equal Weight at Wells Fargo)
  • EXAS +0.9% (upgraded to Buy from Hold at The Benchmark Company)

>>> Alibaba provides repurchase update; has $11.7 bln remaining under share repu

Alibaba provides repurchase update; has $11.7 bln remaining under share repurchase program as of Dec 31, 2023 (77.51)
  • During the 12 months ended December 31, 2023, Alibaba repurchased a total of 897.9 mln ordinary shares (equivalent of 112.2 mln ADSs) for a total of US$9.5 bln, including the purchase of 292.7 mln ordinary shares (equivalent of 36.6 mln ADSs) for a total of US$2.9 bln during the quarter ended December 31, 2023. These purchases were made in both the U.S. and Hong Kong markets under our share repurchase program.
  • The remaining amount of Board authorization for share repurchase program, which is effective through March 2025, was US$11.7 bln as of December 31, 2023. "Going forward, we will provide updates on our share repurchase immediately after the end of each quarter."

WSJ : Wealthy Investors Rescued Juul From Bankruptcy. Others Are Crying Foul.

Wealthy Investors Rescued Juul From Bankruptcy. Others Are Crying Foul.
Lawsuit accuses two directors of benefiting themselves through corporate financial maneuvers; Juul says decisions were made in company’s best interests

Two of Juul Labs’ longtime directors—a Hyatt Hotels heir and a venture capitalist—helped bail out the e-cigarette maker when it was on the brink of insolvency.

It was a deal that preserved the equity investments of Nick Pritzker and Riaz Valani, cemented their influence over the company and secured them releases from liability in thousands of lawsuits against Juul. Now Juul is fighting a lawsuit from a group of investors alleging that those two directors were looking out for their own interests, not the company’s.

Among the questions in dispute is whether the bailout that allowed Juul to avert bankruptcy in 2022 benefited insiders at the expense of other investors.

The allegations have come to light as the company is trying to raise new capital, become profitable for the first time and turn the page after a turbulent year-and-a-half.

Juul says that it delegated decisions to independent directors and that it secured needed financing from investors who support the company’s mission of offering adult cigarette smokers a less-harmful alternative.

Juul was once a vaping juggernaut and one of the most valuable startups in America. Tobacco giant Altria Group in 2018 invested $12.8 billion in Juul. Juul used nearly all of the cash from Altria’s investment to fund employee bonuses and shareholder dividends, including more than $2 billion to Valani and more than $1 billion to Pritzker, The Wall Street Journal has reported.

Since then, Juul has been beset by thousands of lawsuits over its marketing practices and embroiled in a dispute with federal regulators over whether its e-cigarettes can be sold in the U.S. Juul has denied allegations that it marketed its e-cigarettes to children and teens.

Juul began exploring bankruptcy in June 2022, when the Food and Drug Administration ordered its e-cigarettes off the market and a court stayed the order. By September 2022, according to people familiar with the matter, Juul’s top executives agreed that bankruptcy was the likeliest outcome. The start of Juul’s first bellwether trial was looming, and the company was struggling to raise money to settle outstanding lawsuits while its products remained in regulatory limbo.

In board meetings and in conversations with the CEO, Pritzker and Valani argued that the company shouldn’t file for bankruptcy and offered it a bailout instead, these people said. Pritzker and Valani were early Juul investors and have long been powerful members on its board.

As the bailout was being discussed, Juul’s chief executive and top lawyer raised concerns internally about potential conflicts of interest facing Pritzker and Valani, according to the people familiar with the matter. Valani continued to press the case against bankruptcy to CEO K.C. Crosthwaite while Juul interviewed candidates for a special board committee to oversee the company’s next steps, these people said.

The bailout was done in three parts. Pritzker and Valani in September 2022 refinanced a Juul term loan and later that fall loaned Juul more money to cover operating costs. Finally, the two directors, along with Juul co-founders James Monsees and Adam Bowen, backstopped a sweeping legal settlement and made an equity investment in Juul. Pritzker, Valani and the co-founders, who were named as co-defendants in many of the lawsuits, have denied wrongdoing.

Juul, after approaching dozens of potential investors, closed a funding round in October 2023 that raised $1.27 billion. That sum included money that entities connected to Pritzker, Valani, and Juul’s two co-founders committed for Juul’s legal settlement and an additional $45 million from the same four investors.

Entities tied to Valani and Pritzker now own nearly half of Juul, while most other investors have had their stakes sharply diluted amid the rescue.

Affiliates of hedge fund D1 Capital Partners and two other investors sued Juul in October 2023 to block a debt conversion triggered by the funding round. The conversion would slash $2 billion in outstanding notes to $116 million in equity, a 94% drop in value, according to Juul.

The lawsuit alleges that Pritzker and Valani “leveraged a distressed situation for their own personal gain to the detriment of Juul’s other stakeholders.”

Juul said that its management never decided that bankruptcy was the best path. The company said its actions over the past year-and-a-half were far better than the alternative—bankruptcy—which could have wiped out all shareholders’ equity. Since 2022, Juul has settled nearly all of its remaining legal liabilities and cut expenses, including roughly halving its employee head count.

The company said its board avoided conflicts of interest by bringing on two independent directors with restructuring experience to form a special committee. In a statement, the committee said it assessed the company’s options with the assistance of separate legal advisers, and made decisions that maximized the company’s value.

Altria’s 2018 investment had set Juul’s share price at $279. The investment round that closed in October put it at $1.07.

Juul’s CEO told employees at an internal meeting in November that they would receive equity awards—the way new employees do when they join a startup—to compensate for the dilution in their shares.

“I believe that we’ve got significant value we can go build from here,” Crosthwaite said at the meeting.

Juul in 2024 aims to raise another $330 million as it fights to keep its existing products on the U.S. market and submits new vaping products for federal authorization. It is still offering shares at $1.07 to Juul’s shareholders and potential new investors.